XAU/USD: Technical Analysis and Trading Recommendations_11/05/2021

 
 
 
 
 
 
 

As we noted above, yesterday the XAU / USD pair rose sharply, breaking through the important resistance levels of 1782.00 (EMA50 on the daily chart, EMA200 on the 4-hour chart), 1787.00 (EMA200 on the 1-hour chart).

At the time of publication of this article, XAU / USD has stabilized in the zone of key resistance levels 1795.00 (ЕМА200 on the daily chart), 1800.00 (psychologically significant level).

Staying below the key resistance level 1800.00, XAU / USD is in the mid-term bear market zone.

But its breakdown can provoke further growth of XAU / USD with an intermediate target at the local resistance levels 1814.00, 1835.00.

At the same time, it is better to open short positions after the breakdown of the strong support level 1782.00 with targets at the local support levels 1759.00, 1746.00, 1725.00.

More distant targets of decline are located at support levels 1685.00 (Fibonacci level 61.8% of the correction to the growth wave since November 2015 and the level of 1050.00), 1675.00 (ЕМА144 on the weekly chart), 1615.00 (ЕМА200 on the weekly chart). A breakdown of the support level 1560.00 (50% Fibonacci level and the lower line of the descending channel on the weekly chart) will increase the risks of XAU / USD moving into a long-term downtrend.

Support levels: 1787.00, 1782.00, 1759.00, 1725.00, 1685.00, 1670.00, 1615.00, 1560.00

Resistance levels: 1795.00, 1800.00, 1814.00, 1835.00, 1900.00, 1916.00, 1963.00, 1976.00, 2000.00, 2010.00

Trading recommendations

Sell Stop 1785.00. Stop-Loss 1803.00. Take-Profit 1780.00, 1759.00, 1725.00, 1685.00, 1670.00, 1615.00, 1560.00

Buy Stop 1803.00. Stop-Loss 1785.00. Take-Profit 1814.00, 1835.00, 1900.00, 1916.00, 1963.00, 1976.00, 2000.00, 2010.00